31.10.2017

Baltic Pipe: the final phase of the Open Season 2017 ends up with a positive result

The second and final phase of the Open Season 2017 procedure has proved the demand from the market for capacity to be delivered by the Baltic Pipe Project. In this phase of the Open Season 2017 market players have confirmed the interest shown in the first phase, by submitting binding bids committing themselves finally to 15-year contracts for capacity transmission from the North Sea through Denmark to Poland.

The Open Season 2017 procedure for the Baltic Pipe Project, conducted by the Polish and Danish gas transmission system operators, GAZ-SYSTEM and Energinet, has enabled network users to declare their demand for the establishment of upstream and  transmission  infrastructure  that  allows  for  transportation  of  gas  from  Norway through Denmark to Poland, and from Poland to Denmark.

After the completion of the Phase 2, both gas transmission system operators have made an evaluation of the bids and determined the results of the capacity allocation procedure, which proved a market interest in the capacity proposed in the Baltic Pipe Project.

Pursuant to requirements of the national energy regulatory authorities in Poland and Denmark, ERO and DERA respectively, Energinet and GAZ-SYSTEM will run the so-called Economic Test. The economic tests are to be conducted by November 30, 2017 at the latest. The result of the economic tests shall be announced by GAZ-SYSTEM and Energinet in a form of a public announcement.
The conclusion of the Open Season 2017 Capacity Agreements depends on the positive results of the Economic Tests and other conditions set forth in the Open Season 2017 Rules. The Capacity Agreements are expected to be signed by end of January 2018.

Based on the positive result of the Open Season 2017, both Energinet and GAZ-SYSTEM will continue their project activities in order to be able to deliver first gas in 2022 if a positive investment decision is taken in 2018. The project activities in 2017 include launching of the Environmental Impact Assessment processes and dialogue with local stakeholders, as well as finalization of conceptual design studies, socio-economic analyses and business case calculations based on the final result of the Open Season 2017.

A final investment decision in 2018 depends i.a. on the conditions set forth in the Capacity Agreements. In Denmark the investment requires the approval of the Minister for Energy, Utilities and Climate

Read more about the Open Season 2017 on Energinet and on GAZ-SYSTEM.

Read the news about the result of Open Season Phase 1 from July 25, 2017

GAZ-SYSTEM plays a strategic role in the Polish economy. We are responsible for natural gas transmission and operate the most important gas pipelines in Poland. As part of the 2015-2025 investment programme, GAZ-SYSTEM plans to build over 2000 km of new gas pipelines in western, southern and eastern parts of Poland. Further development of the national transmission network, including the construction of new gas pipelines making part of the North-South Gas Corridor, as well as the construction of interconnections with the neighbouring countries, will strengthen Poland’s energy security and make an important contribution to the development of the European transmission system.

The Company is implementing one of the most important infrastructural projects in Poland – the Baltic Pipe project, which consists in the construction of a bidirectional offshore gas pipeline connecting Poland and Denmark and the expansion of the local transmission network.

GAZ-SYSTEM also owns Polskie LNG, the operator of the President Lech Kaczyński's LNG Terminal in Świnoujście.

 


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